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Tenant Freebies Begin to Stabilize as Boston Office Activity Levels Rise: Avison Young
Concession packages for Boston office leases remained at historic highs in the third quarter, but tenant improvement allowances and free rent periods have begun to stabilize as activity levels increase, according to Avison Young’s Third Quarter 2021 Office Market Report for Boston.
Net absorption as a percentage of existing inventory had bottomed out earlier in the pandemic but is now on the rise with the overall rate of -0.5% to date in 2021, which is nowhere near the lows of 2020.
“There is a positive momentum within the Boston office market, with currently less than a 675,000-square-foot difference in activity between 2020 and year-to-date 2021,” said Elaine Wall, northeast data team lead at Avison Young. “However, the annualized pace of closed deals remains the weakest reported since the year 2000 at 9.1 million square feet.”
The sublease market accounted for 4.2 million square feet of vacancy in Q3.
- ◦Lease
